Under which of the following circumstances would an insurer be allowed to cancel a dwelling policy midterm?

An insurer is allowed to cancel a dwelling policy midterm if there is a material misrepresentation, such as when the insured knowingly provides false information about the year the property was constructed. This is significant because the age of a property can affect the risk assessment and underwriting decision made by the insurer. When the insured misrepresents such critical information, it can lead to increased risks for the insurer, making them justifiably wary about continuing coverage.

In contrast, renovations to the property might change the risk but do not automatically justify midterm cancellation; insurers typically have protocols to adjust coverage as necessary when renovations are reported. Failing to pay a deductible does not result in policy cancellation, as deductibles are not conditions for maintaining coverage but rather terms for losses. Adding additional coverage, provided it is approved by the insurer, typically does not lead to cancellation either but rather may require an adjustment of the premium. Thus, the ability to cancel hinges primarily on misrepresentations that materially affect underwriting decisions.